Factors Influencing the Customers’ Preferences to Adopt the Green Banking Products in Rathnapura District

Abstract

This study focuses to investigate the key factors influencing the customers’ preferences toward the adoption of green banking products in the Rathnapura District of Sri Lanka. Data were collected by distributing a structured questionnaire among sample of 142 customers of the Bank of Ceylon in Rathnapura district. The collected data were analyzed using correlation, and multiple linear regression model. Customers’ preferences to adopt green banking products has been considered as the dependent variable and green banking awareness and usage, ease of use and usefulness, trust, security and privacy, and green brand image and perceived value considered as independent variables in the model. The results of correlation revealed that green banking awareness and usage has negatively weak relationship with the adoption of green banking products, but other three independent variables have positively moderate relates with the adoption of green banking products. Findings of the multiple linear regression model revealed that among the above four green brand dimensions, only ease of use and usefulness and image and perceived value have significant positive impact on customer’s preferences to adopt green banking products. Other two independent variables such as green banking awareness and usage, and image and perceived value have no significant impact on the adopt of green banking products. The findings of this study offer practical implications for Bank of Ceylon, other banks and policy makers to improve the green banking practices within their organizations to attract and retain more customers in future.